Question

Find the principal when simple interest $16\%$ per annum for $2\frac{1}{2}years$ is $₹3840$.

Answer 1

Let the principal be $P$.

Time (T) = $2\frac{1}{2}years$=$\frac{5}{2}years$

Rate of interest (R) = $16\%perannum$

Simple interest (I) = $₹3840$

$\frac{P\times R\times T}{100}=₹3840$

$\frac{P\times 16\times {\displaystyle \frac{5}{2}}}{100}=₹3840$

$P=\frac{3840\times 100\times 2}{16\times 5}$

$P=\frac{16\times 24\times 10\times 100\times 2}{16\times 5}$

$P=24\times 2\times 100\times 2$

$P=₹9600$

Hence, Principal is $₹9600$